Question: Create a table for the answer to this problem. Include these categories: AMT; Regular Tax: Adjustment. Charles had the following itemized deductions in 2014: State
Create a table for the answer to this problem. Include these categories: AMT; Regular Tax: Adjustment.
Charles had the following itemized deductions in 2014:
State income taxes $3,000 Charitable contributions 4,900 Mortgage interest (personal residence) 14,000 Medical expenses [$8,000-(7.5% $75,000)] 2,375 Miscellaneous [$3,200-(2%$75,000)] 1,700
a. What are Charles itemized deductions for AMT purposes?
b. What is the amount of the AMT adjustment?
I came up with these answers but I am being told I am wrong... ??
|
| AMT | Regular Tax | Adjustments |
| State Income Taxes | $0 | $3,000 | $3,000 |
| Charitable Contributions | $4,900 | $4,900 | $0 |
| Mortgage Interest | $14,000 | $14,000 | $0 |
| Medical Expenses | ($8,000-(10%*75,000)) = $500 | $2,375 | $1,875 |
| Miscellaneous | $0 | $1,700 | $1,700 |
Totals $19,400 $25,975 $6,575
a. What are Charles itemized deductions for AMT purposes? $19,400
b. What is the amount of the AMT adjustment? $6,575
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